§ 636.
(b)
Disaster loans; authorization, scope, terms and conditions, etc.
Except as to agricultural enterprises as defined in
section 647(b)(1) of this title, the Administration also is empowered to the extent and in such amounts as provided in advance in appropriation Acts—
(1)
(A)
to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to repair, rehabilitate or replace property, real or personal, damaged or destroyed by or as a result of natural or other disasters: Provided, That such damage or destruction is not compensated for by insurance or otherwise: And provided further, That the Administration may increase the amount of the loan by up to an additional 20 per centum of the aggregate costs of such damage or destruction (whether or not compensated for by insurance or otherwise) if it determines such increase to be necessary or appropriate in order to protect the damaged or destroyed property from possible future disasters by taking mitigating measures, including—
(i)
construction of retaining walls and sea walls;
(ii)
grading and contouring land; and
(iii)
relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency;
(B)
to refinance any mortgage or other lien against a totally destroyed or substantially damaged home or business concern: Provided, That no loan or guarantee shall be extended unless the Administration finds that (i) the applicant is not able to obtain credit elsewhere; (ii) such property is to be repaired, rehabilitated, or replaced; (iii) the amount refinanced shall not exceed the amount of physical loss sustained; and (iv) such amounts shall be reduced to the extent such mortgage or lien is satisfied by insurance or otherwise; and
(C)
during fiscal years 2000 through 2004, to establish a predisaster mitigation program to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis), as the Administrator may determine to be necessary or appropriate, to enable small businesses to use mitigation techniques in support of a formal mitigation program established by the Federal Emergency Management Agency, except that no loan or guarantee may be extended to a small business under this subparagraph unless the Administration finds that the small business is otherwise unable to obtain credit for the purposes described in this subparagraph;
(2)
to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the Administration may determine to be necessary or appropriate to any small business concern, private nonprofit organization, or small agricultural cooperative located in an area affected by a disaster,
9
So in original. The comma probably should not appear.
(including drought), with respect to both farm-related and nonfarm-related small business concerns, if the Administration determines that the concern, the organization, or the cooperative has suffered a substantial economic injury as a result of such disaster and if such disaster constitutes—
(A)
a major disaster, as determined by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
42 U.S.C. 5121 et seq.);
(B)
a natural disaster, as determined by the Secretary of Agriculture pursuant to
section 1961 of title 7, in which case, assistance under this paragraph may be provided to farm-related and nonfarm-related small business concerns, subject to the other applicable requirements of this paragraph;
(C)
a disaster, as determined by the Administrator of the Small Business Administration;
(D)
an emergency involving Federal primary responsibility determined to exist by the President under the
section 5191(b) of title 42; or
(E)
if no disaster or emergency declaration has been issued pursuant to subparagraph (A), (B), (C), or (D), the Governor of a State in which a disaster or emergency has occurred may certify to the Small Business Administration that small business concerns, private nonprofit organizations, or small agricultural cooperatives (1) have suffered economic injury as a result of such disaster or emergency, and (2) are in need of financial assistance which is not available on reasonable terms in the disaster- or emergency-stricken area. Not later than 30 days after the date of receipt of such certification by a Governor of a State, the Administration shall respond in writing to that Governor on its determination and the reasons therefore,
10
So in original. Probably should be “therefor,”.
and may then make such loans as would have been available under this paragraph if a disaster or emergency declaration had been issued.
(3)
(A)
In this paragraph—
(ii)
the term “essential employee” means an individual who is employed by a small business concern and whose managerial or technical expertise is critical to the successful day-to-day operations of that small business concern; and
(iii)
the term “substantial economic injury” means an economic harm to a business concern that results in the inability of the business concern—
(I)
to meet its obligations as they mature;
(II)
to pay its ordinary and necessary operating expenses; or
(III)
to market, produce, or provide a product or service ordinarily marketed, produced, or provided by the business concern.
(B)
The Administration may make such disaster loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) to assist a small business concern that has suffered or that is likely to suffer substantial economic injury as the result of an essential employee of such small business concern being ordered to perform active service for a period of more than 30 consecutive days.
(C)
A small business concern described in subparagraph (B) shall be eligible to apply for assistance under this paragraph during the period beginning on the date on which the essential employee is ordered to active service and ending on the date that is 1 year after the date on which such essential employee is discharged or released from active service. The Administrator may, when appropriate (as determined by the Administrator), extend the ending date specified in the preceding sentence by not more than 1 year.
(D)
Any loan or guarantee extended pursuant to this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2).
(E)
No loan may be made under this paragraph, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis, if the total amount outstanding and committed to the borrower under this subsection would exceed $1,500,000, unless such applicant constitutes, or have
11
So in original. Probably should be “has”.
become due to changed economic circumstances, a major source of employment in its surrounding area, as determined by the Administration, in which case the Administration, in its discretion, may waive the $1,500,000 limitation.
(F)
For purposes of assistance under this paragraph, no declaration of a disaster area shall be required.
(G)
(i)
Notwithstanding any other provision of law, the Administrator may make a loan under this paragraph of not more than $50,000 without collateral.
(ii)
The Administrator may defer payment of principal and interest on a loan described in clause (i) during the longer of—
(I)
the 1-year period beginning on the date of the initial disbursement of the loan; and
(II)
the period during which the relevant essential employee is on active service.
(H)
The Administrator shall give priority to any application for a loan under this paragraph and shall process and make a determination regarding such applications prior to processing or making a determination on other loan applications under this subsection, on a rolling basis.
(4)
Coordination with fema.—
(A)
In general.—
Notwithstanding any other provision of law, for any disaster declared under this subsection or major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), the Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, shall ensure, to the maximum extent practicable, that all application periods for disast
er relief under this chapter correspond with application deadlines established under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
(B)
Deadlines.—
Notwithstanding any other provision of law, not later than 10 days before the closing date of an application period for a major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), the Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that includes—
(i)
the deadline for submitting applications for assistance under this chapter relating to that major disaster;
(ii)
information regarding the number of loan applications and disbursements processed by the Administrator relating to that major disaster for each day during the period beginning on the date on which that major disaster was declared and ending on the date of that report; and
(iii)
an estimate of the number of potential applicants that have not submitted an application relating to that major disaster.
(5)
Public awareness of disasters.—
If a disaster is declared under this subsection or the Administrator declares eligibility for additional disaster assistance under paragraph (9), the Administrator shall make every effort to communicate through radio, television, print, and web-based outlets, all relevant information needed by disaster loan applicants, including—
(A)
the date of such declaration;
(B)
cities and towns within the area of such declaration;
(C)
loan application deadlines related to such disaster;
(D)
all relevant contact information for victim services available through the Administration (including links to small business development center websites);
(E)
links to relevant Federal and State disaster assistance websites, including links to websites providing information regarding assistance available from the Federal Emergency Management Agency;
(F)
information on eligibility criteria for Administration loan programs, including where such applications can be found; and
(G)
application materials that clearly state the function of the Administration as the Federal source of disaster loans for homeowners and renters.
(6)
Authority for qualified private contractors.—
(A)
Disaster loan processing.—
The Administrator may enter into an agreement with a qualified private contractor, as determined by the Administrator, to process loans under this subsection in the event of a major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), under which the Administrator shall pay the contractor a fee for each loan processed.
(B)
Loan loss verification services.—
The Administrator may enter into an agreement with a qualified lender or loss verification professional, as determined by the Administrator, to verify losses for loans under this subsection in the event of a major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph (9)), under which the Administrator shall pay the lender or verification professional a fee for each loan for which such lender or verification professional verifies losses.
(7)
Disaster assistance employees.—
(A)
In general.—
In carrying out this section, the Administrator may, where practicable, ensure that the number of full-time equivalent employees—
(i)
in the Office of the Disaster Assistance is not fewer than 800; and
(ii)
in the Disaster Cadre of the Administration is not fewer than 1,000.
(B)
Report.—
In carrying out this subsection, if the number of full-time employees for either the Office of Disaster Assistance or the Disaster Cadre of the Administration is below the level described in subparagraph (A) for that office, not later than 21 days after the date on which that staffing level decreased below the level described in subparagraph (A), the Administrator shall submit to the Committee on Appropriations and the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Appropriations and Committee on Small Business of the House of Representatives, a report—
(i)
detailing staffing levels on that date;
(ii)
requesting, if practicable and determined appropriate by the Administrator, additional funds for additional employees; and
(iii)
containing such additional information, as determined appropriate by the Administrator.
(8)
Increased loan caps.—
(A)
Aggregate loan amounts.—
Except as provided in subparagraph (B), and notwithstanding any other provision of law, the aggregate loan amount outstanding and committed to a borrower under this subsection may not exceed $2,000,000.
(B)
Waiver authority.—
The Administrator may, at the discretion of the Administrator, increase the aggregate loan amount under subparagraph (A) for loans relating to a disaster to a level established by the Administrator, based on appropriate economic indicators for the region in which that disaster occurred.
(9)
Declaration of eligibility for additional disaster assistance.—
(A)
In general.—
If the President declares a major disaster, the Administrator may declare eligibility for additional disaster assistance in accordance with this paragraph.
(B)
Threshold.—
A major disaster for which the Administrator declares eligibility for additional disaster assistance under this paragraph shall—
(i)
have resulted in extraordinary levels of casualties or damage or disruption severely affecting the population (including mass evacuations), infrastructure, environment, economy, national morale, or government functions in an area;
(ii)
be comparable to the description of a catastrophic incident in the National Response Plan of the Administration, or any successor thereto, unless there is no successor to such plan, in which case this clause shall have no force or effect; and
(iii)
be of such size and scope that—
(I)
the disaster assistance programs under the other paragraphs under this subsection are incapable of providing adequate and timely assistance to individuals or business concerns located within the disaster area; or
(II)
a significant number of business concerns outside the disaster area have suffered disaster-related substantial economic injury as a result of the incident.
(C)
Additional economic injury disaster loan assistance.—
(i)
In general.—
If the Administrator declares eligibility for additional disaster assistance under this paragraph, the Administrator may make such loans under this subparagraph (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) as the Administrator determines appropriate to eligible small business concerns located anywhere in the United States.
(ii)
Processing time.—
(I)
In general.—
If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph relating to a specific major disaster is more than 15 days, the Administrator shall give priority to the processing of such applications submitted by eligible small business concerns located inside the disaster area, until the Administrator determines that the average processing time for such applications is not more than 15 days.
(II)
Suspension of applications from outside disaster area.—
If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph relating to a specific major disaster is more than 30 days, the Administrator shall suspend the processing of such applications submitted by eligible small business concerns located outside the disaster area, until the Administrator determines that the average processing time for such applications is not more than 15 days.
(iii)
Loan terms.—
A loan under this subparagraph shall be made on the same terms as a loan under paragraph (2).
(D)
Definitions.—
In this paragraph—
(i)
the term “disaster area” means the area for which the applicable major disaster was declared;
(ii)
the term “disaster-related substantial economic injury” means economic harm to a business concern that results in the inability of the business concern to—
(I)
meet its obligations as it matures;
(II)
meet its ordinary and necessary operating expenses; or
(III)
market, produce, or provide a product or service ordinarily marketed, produced, or provided by the business concern because the business concern relies on materials from the disaster area or sells or markets in the disaster area; and
(iii)
the term “eligible small business concern” means a small business concern—
(I)
that has suffered disaster-related substantial economic injury as a result of the applicable major disaster; and
(II)
(aa)
for which not less than 25 percent of the market share of that small business concern is from business transacted in the disaster area;
(bb)
for which not less than 25 percent of an input into a production process of that small business concern is from the disaster area; or
(cc)
that relies on a provider located in the disaster area for a service that is not readily available elsewhere.
(10)
Reducing closing and disbursement delays.—
The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan.
(11)
Increasing transparency in loan approvals.—
The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection.
(12)
Additional awards to small business development centers, women’s business centers, and score for disaster recovery.—
(A)
In general.—
The Administration may provide financial assistance to a small business development center, a women’s business center described in
section 656 of this title, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities to spur disaster recovery and growth of small business concerns located in an area for which the President has declared a major disaster.
(B)
Form of financial assistance.—
Financial assistance provided under this paragraph shall be in the form of a grant, contract, or cooperative agreement.
(C)
No matching funds required.—
Matching funds shall not be required for any grant, contract, or cooperative agreement under this paragraph.
(D)
Requirements.—
A recipient of financial assistance under this paragraph shall provide counseling, training, and other related services, such as promoting long-term resiliency, to small business concerns and entrepreneurs impacted by a major disaster.
(E)
Performance.—
(i)
In general.—
The Administrator, in cooperation with the recipients of financial assistance under this paragraph, shall establish metrics and goals for performance of grants, contracts, and cooperative agreements under this paragraph, which shall include recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns.
(ii)
Use of estimates.—
The Administrator shall base the goals and metrics for performance established under clause (i), in part, on the estimates of disaster impact prepared by the Office of Disaster Assistance for purposes of estimating loan-making requirements.
(F)
Term.—
(i)
In general.—
The term of any grant, contract, or cooperative agreement under this paragraph shall be for not more than 2 years.
(ii)
Extension.—
The Administrator may make 1 extension of a grant, contract, or cooperative agreement under this paragraph for a period of not more than 1 year, upon a showing of good cause and need for the extension.
(G)
Exemption from other program requirements.—
Financial assistance provided under this paragraph is in addition to, and wholly separate from, any other form of assistance provided by the Administrator under this chapter.
(H)
Competitive basis.—
The Administration shall award financial assistance under this paragraph on a competitive basis.
(13)
Supplemental assistance for contractor malfeasance.—
(A)
In general.—
If a contractor or other person engages in malfeasance in connection with repairs to, rehabilitation of, or replacement of real or personal property relating to which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety, upon receiving documentation of the substantial economic damage or the substantial risk to health and safety from an independent loss verifier, and subject to subparagraph (B), the Administrator may increase the amount of the loan under this subsection, as necessary for the cost of repairs, rehabilitation, or replacement needed to address the cause of the economic damage or health or safety risk.
(B)
Requirements.—
The Administrator may only increase the amount of a loan under subparagraph (A) upon receiving an appropriate certification from the borrower and person performing the mitigation attesting to the reasonableness of the mitigation costs and an assignment of any proceeds received from the person engaging in the malfeasance. The assignment of proceeds recovered from the person engaging in the malfeasance shall be equal to the amount of the loan under this section. Any mitigation activities shall be subject to audit and independent verification of completeness and cost reasonableness.
(14)
Business recovery centers.—
(A)
In general.—
The Administrator, acting through the district offices of the Administration, shall identify locations that may be used as recovery centers by the Administration in the event of a disaster declared under this subsection or a major disaster.
(B)
Requirements for identification.—
Each district office of the Administration shall—
(i)
identify a location described in subparagraph (A) in each county, parish, or similar unit of general local government in the area served by the district office; and
(ii)
ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Government, to the extent practicable.
(15)
Increased oversight of economic injury disaster loans.—
The Administrator shall increase oversight of entities receiving loans under paragraph (2), and may consider—
(A)
scheduled site visits to ensure borrower eligibility and compliance with requirements established by the Administrator; and
(B)
reviews of the use of the loan proceeds by an entity described in paragraph (2) to ensure compliance with requirements established by the Administrator.
(16)
12
So in original. Two pars. (16) have been enacted.
Disaster declaration in rural areas.— (A)
Definitions.—
In this paragraph—
(i)
the term “rural area” means any county or other political subdivision of a State, the District of Columbia, or a territory or possession of the United States that is designated as a rural area by the Bureau of the Census; and
(ii)
the term “significant damage” means, with respect to property, uninsured losses of not less than 40 percent of the estimated fair replacement value or pre-disaster fair market value of the damaged property, whichever is lower.
(B)
Disaster declaration.—
For the purpose of making loans under paragraph (1) or (2), the Administrator may declare a disaster in a rural area for which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
42 U.S.C. 5170) and for which individual assistance was not authorized under section 408 of such Act (
42 U.S.C. 5174) if—
(i)
the Governor of the State or the Chief Executive of the Indian tribal government in which the rural area is located requests such a declaration; and
(ii)
any home, small business concern, private nonprofit organization, or small agricultural cooperative has incurred significant damage in the rural area.
(C)
SBA report.—
Not later than 120 days after December 20, 2022, and every year thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on, with respect to the 1-year period preceding submission of the report—
(i)
any economic injury that resulted from a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
42 U.S.C. 5170) in a rural area;
(ii)
each request for assistance made by the Governor of a State or the Chief Executive of an Indian tribal government under subparagraph (B)(i) and the response of the Administrator, including the timeline for each response; and
(iii)
any regulatory changes that will impact the ability of communities in rural areas to obtain disaster assistance under this subsection.
(16)
12 Statute of limitations.—
Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to a loan made under this subsection in response to COVID–19 during the covered period (as defined in
section 9009(a) of this title) shall be filed not later than 10 years after the offense was committed.
No loan under this subsection, including renewals and extensions thereof, may be made for a period or periods exceeding thirty years: Provided, That the Administrator may consent to a suspension in the payment of principal and interest charges on, and to an extension in the maturity of, the Federal share of any loan under this subsection for a period not to exceed five years, if (A) the borrower under such loan is a homeowner or a small business concern, (B) the loan was made to enable (i) such homeowner to repair or replace his home, or (ii) such concern to repair or replace plant or equipment which was damaged or destroyed as the result of a disaster meeting the requirements of clause (A) or (B) of paragraph (2) of this subsection, and (C) the Administrator determines such action is necessary to avoid severe financial hardship: Provided further, That the provisions of paragraph (1) of subsection (d) of this section shall not be applicable to any such loan having a maturity in excess of twenty years. Notwithstanding any other provision of law, and except as provided in subsection (d), the interest rate on the Administration’s share of any loan made under subsection (b) shall not exceed the average annual interest rate on all interest-bearing obligations of the United States then forming a part of the public debt as computed at the end of the fiscal year next preceding the date of the loan and adjusted to the nearest one-eighth of 1 per centum plus one-quarter of 1 per centum: Provided, however, That the interest rate for loans made under paragraphs (1) and (2) hereof shall not exceed the rate of interest which is in effect at the time of the occurrence of the disaster. In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement. Notwithstanding any other provision of law, the interest rate on the Administration’s share of any loan made pursuant to paragraph (1) of this subsection to repair or replace a primary residence and/or replace or repair damaged or destroyed personal property, less the amount of compensation by insurance or otherwise, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1, 1978, shall be: 1 per centum on the amount of such loan not exceeding $10,000, and 3 per centum on the amount of such loan over $10,000 but not exceeding $40,000. The interest rate on the Administration’s share of the first $250,000 of all other loans made pursuant to paragraph (1) of this subsection, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1, 1978, shall be 3 per centum. All repayments of principal on the Administration’s share of any loan made under the above provisions shall first be applied to reduce the principal sum of such loan which bears interest at the lower rates provided in this paragraph. The principal amount of any loan made pursuant to paragraph (1) in connection with a disaster which occurs on or after April 1, 1977, but prior to January 1, 1978, may be increased by such amount, but not more than $2,000, as the Administration determines to be reasonable in light of the amount and nature of loss, damage, or injury sustained in order to finance the installation of insulation in the property which was lost, damaged, or injured, if the uninsured, damaged portion of the property is 10 per centum or more of the market value of the property at the time of the disaster. Not later than June 1, 1978, the Administration shall prepare and transmit to the Select Committee on Small Business of the Senate, the Committee on Small Business of the House of Representatives, and the Committees of the Senate and House of Representatives having jurisdiction over measures relating to energy conservation, a report on its activities under this paragraph, including therein an evaluation of the effect of such activities on encouraging the installation of insulation in property which is repaired or replaced after a disaster which is subject to this paragraph, and its recommendations with respect to the continuation, modification, or termination of such activities.
In the administration of the disaster loan program under paragraphs (1) and (2) of this subsection, in the case of property loss or damage or injury resulting from a major disaster as determined by the President or a disaster as determined by the Administrator which occurs on or after January 1, 1971, and prior to July 1, 1973, the Small Business Administration, to the extent such loss or damage or injury is not compensated for by insurance or otherwise—
(A)
may make any loan for repair, rehabilitation, or replacement of property damaged or destroyed without regard to whether the required financial assistance is otherwise available from private sources;
(B)
may, in the case of the total destruction or substantial property damage of a home or business concern, refinance any mortgage or other liens outstanding against the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced, except that (1) in the case of a business concern, the amount refinanced shall not exceed the amount of the physical loss sustained, and (2) in the case of a home, the amount of each monthly payment of principal and interest on the loan after refinancing under this clause shall not be less than the amount of each such payment made prior to such refinancing;
(C)
may, in the case of a loan made under clause (A) or a mortgage or other lien refinanced under clause (B) in connection with the destruction of, or substantial damage to, property owned and used as a residence by an individual who by reason of retirement, disability, or other similar circumstances relies for support on survivor, disability, or retirement benefits under a pension, insurance, or other programs, consent to the suspension of the payments of the principal of that loan, mortgage, or lien during the lifetime of that individual and his spouse for so long as the Administration determines that making such payments would constitute a substantial hardship;
(D)
shall notwithstanding the provisions of any other law and upon presentation by the applicant of proof of loss or damage or injury and a bona fide estimate of cost of repair, rehabilitation, or replacement, cancel the principal of any loan made to cover a loss or damage or injury resulting from such disaster, except that—
(i)
with respect to a loan made in connection with a disaster occurring on or after January 1, 1971 but prior to January 1, 1972, the total amount so canceled shall not exceed $2,500, and the interest on the balance of the loan shall be at a rate of 3 per centum per annum; and
(ii)
with respect to a loan made in connection with a disaster occurring on or after January 1, 1972 but prior to July 1, 1973, the total amount so canceled shall not exceed $5,000 and the interest on the balance of the loan shall be at a rate of 1 percentum per annum.
(E)
13
See 1980 Amendment note below.
A State grant made on or prior to
July 1, 1979, shall not be considered compensation for the purpose of applying the provisions of section 312(a) of the Disaster Relief and Emergency Assistance Act [
42 U.S.C. 5155(a)] to a disaster loan under paragraph (1) (2)
14
So in original. Probably should be “or (2)”.
of this subsection.
With respect to any loan referred to in clause (D) which is outstanding on August 16, 1972, the Administrator shall—
(i)
make such change in the interest rate on the balance of such loan as is required under that clause effective as of August 16, 1972; and
(ii)
in applying the limitation set forth in that clause with respect to the total amount of such loan which may be canceled, consider as part of the amount so canceled any part of such loan which was previously canceled pursuant to section 231 of the Disaster Relief Act of 1970 [
15 U.S.C. 636a].
Whoever wrongfully misapplies the proceeds of a loan obtained under this subsection shall be civilly liable to the Administrator in an amount equal to one-and-one half times the original principal amount of the loan.
([Pub. L. 85–536, § 2[7]], July 18, 1958, [72 Stat. 387]; [Pub. L. 85–699, title VI, § 602(c)], Aug. 21, 1958, [72 Stat. 698]; [Pub. L. 86–367, § 2], Sept. 22, 1959, [73 Stat. 647]; [Pub. L. 87–70, title III, § 305[a]], June 30, 1961, [75 Stat. 167]; [Pub. L. 87–305, § 9], Sept. 26, 1961, [75 Stat. 668]; [Pub. L. 88–264, § 1], Feb. 5, 1964, [78 Stat. 7]; [Pub. L. 88–560, title III, § 319], Sept. 2, 1964, [78 Stat. 794]; [Pub. L. 89–59, § 1(a)], (b), June 30, 1965, [79 Stat. 206]; [Pub. L. 89–409, § 3(a)], May 2, 1966, [80 Stat. 133]; [Pub. L. 89–769, § 7(b)], Nov. 6, 1966, [80 Stat. 1319]; [Pub. L. 90–104, title I], §§ 103, 104, Oct. 11, 1967, [81 Stat. 268]; [Pub. L. 90–448, title XI, § 1106(a)], Aug. 1, 1968, [82 Stat. 567]; [Pub. L. 90–495, § 31], Aug. 23, 1968, [82 Stat. 835]; [Pub. L. 91–173, title V, § 504(a)], (b), Dec. 30, 1969, [83 Stat. 802]; [Pub. L. 91–596, § 28(a)], (b), Dec. 29, 1970, [84 Stat. 1618]; [Pub. L. 91–597, § 25(a)], (b), Dec. 29, 1970, [84 Stat. 1633], 1634; [Pub. L. 92–385], §§ 1(a), 2(a), Aug. 16, 1972, [86 Stat. 554], 555; [Pub. L. 92–500, § 8(a)], Oct. 18, 1972, [86 Stat. 898]; [Pub. L. 92–595, § 3(b)], Oct. 27, 1972, [86 Stat. 1316]; [Pub. L. 93–237], §§ 2(a), (b), 3(a), 5, 6, Jan. 2, 1974, [87 Stat. 1023], 1024; [Pub. L. 93–386], §§ 2(a)(4), 3(2), 8, 9, 12, Aug. 23, 1974, [88 Stat. 742], 746, 748, 749; [Pub. L. 94–305, title I], §§ 108(b), 109, 111, 112(c), (d), 114, June 4, 1976, [90 Stat. 666], 667; [Pub. L. 95–89, title I, § 101(d)], (e), title III, §§ 301, 302, title IV, §§ 402–405, Aug. 4, 1977, [91 Stat. 553], 558–560; [Pub. L. 95–315], §§ 2, 3, July 4, 1978, [92 Stat. 377], 378; [Pub. L. 95–507, title II], §§ 204, 205, 231, Oct. 24, 1978, [92 Stat. 1764], 1766, 1772; [Pub. L. 95–510, § 104], Oct. 24, 1978, [92 Stat. 1782]; [Pub. L. 96–38, title I, § 101(a)], (b), July 25, 1979, [93 Stat. 118]; [Pub. L. 96–302, title I], §§ 119(a), (b), 122–124, title II, § 203, title V, § 505, July 2, 1980, [94 Stat. 840], 841, 843, 848, 852; [Pub. L. 96–481, title I], §§ 104, 106(a), 107, 112, Oct. 21, 1980, [94 Stat. 2322], 2323; [Pub. L. 97–35, title XIX], §§ 1902, 1910–1912, 1913(a), (c), 1914, Aug. 13, 1981, [95 Stat. 767], 778–780; [Pub. L. 98–270, title III], §§ 301, 304, 308, 309, 311, Apr. 18, 1984, [98 Stat. 159–161]; [Pub. L. 98–395, § 5], Aug. 21, 1984, [98 Stat. 1368]; [Pub. L. 99–272, title XVIII], §§ 18006(a)(1), (2), 18007, 18013, Apr. 7, 1986, [100 Stat. 366], 370; [Pub. L. 99–514, § 2], Oct. 22, 1986, [100 Stat. 2095]; [Pub. L. 100–418, title VIII], §§ 8005, 8007(a), Aug. 23, 1988, [102 Stat. 1557], 1559; [Pub. L. 100–533, title III, § 302(a)], Oct. 25, 1988, [102 Stat. 2693]; [Pub. L. 100–590, title I], §§ 102(a), 103, 111(c), 119(a), 120–122, Nov. 3, 1988, [102 Stat. 2992], 2995, 2999, 3000; [Pub. L. 100–656, title II], §§ 201(a), 202, 203, 205, 206, 208, title III, §§ 301–303(a), title IV, § 408, title V, § 505(h), Nov. 15, 1988, [102 Stat. 3856], 3858, 3859, 3861, 3862, 3865–3868, 3877, 3887; [Pub. L. 100–707, title I, § 109(f)], Nov. 23, 1988, [102 Stat. 4708]; [Pub. L. 101–37], §§ 4–6(a), 7(a), 8–10(b), June 15, 1989, [103 Stat. 70–73]; [Pub. L. 101–162, title V], (1), (2), Nov. 21, 1989, [103 Stat. 1024], 1025; [Pub. L. 101–574, title II], §§ 202, 204(a), 206, 242, 245, title III, § 307, Nov. 15, 1990, [104 Stat. 2818–2820], 2827, 2830; [Pub. L. 102–140, title VI, § 609(b)], (h), Oct. 28, 1991, [105 Stat. 825], 827; [Pub. L. 102–191, § 4], Dec. 5, 1991, [105 Stat. 1591]; [Pub. L. 102–366, title I], §§ 104, 113(a), title II, § 211, Sept. 4, 1992, [106 Stat. 988], 989, 997; [Pub. L. 102–564, title III, § 307(b)], (c), Oct. 28, 1992, [106 Stat. 4263], 4264; [Pub. L. 103–81], §§ 4, 5(a), 8, Aug. 13, 1993, [107 Stat. 781], 782; [Pub. L. 103–403, title II], §§ 201, 202, 204–208(b), 209–211, title VI, §§ 603–605(a), Oct. 22, 1994, [108 Stat. 4180–4183], 4202, 4203; [Pub. L. 104–36], §§ 2–4(a), 5, Oct. 12, 1995, [109 Stat. 295–297]; [Pub. L. 104–208, div. D, title I], §§ 103(a)–(d), (f), 105, 107, 111, Sept. 30, 1996, [110 Stat. 3009–726], 3009–727, 3009–731 to 3009–733; [Pub. L. 105–135, title II], §§ 201, 202(a), 231, title VII, § 706, Dec. 2, 1997, [111 Stat. 2597], 2598, 2606, 2637; [Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(10), (f)(9)]], Oct. 21, 1998, [112 Stat. 2681–337], 2681–420, 2681–430; [Pub. L. 106–8, § 3(a)], (c), Apr. 2, 1999, [113 Stat. 13], 16; [Pub. L. 106–22], §§ 2, 3, Apr. 27, 1999, [113 Stat. 36], 37; [Pub. L. 106–24, § 1(a)], Apr. 27, 1999, [113 Stat. 39]; [Pub. L. 106–50, title IV], §§ 401(b), 402(a), (b), 403, 404, Aug. 17, 1999, [113 Stat. 244–246]; [Pub. L. 106–554, § 1(a)(9) [title II, §§ 202–208(a), 210, title VIII, § 802(a)]], Dec. 21, 2000, [114 Stat. 2763], 2763A–681 to 2763A–684, 2763A–702; [Pub. L. 107–100, § 6(a)], Dec. 21, 2001, [115 Stat. 970]; [Pub. L. 108–447, div. K, title I], §§ 101(a), 102, 103(a), 107(a), (b), Dec. 8, 2004, [118 Stat. 3442–3446];